Stock Market Trading Psychology


*Do you have trouble pulling the trigger and frequently miss big trades or investments that you are sure would be winners?

*Do you seem to have a ceiling in your investing/trading? For example, do you make a specific amount of money only to find that you give it all back?

*Do you invest for excitement? Do you find that you take high-risk trades and can't help yourself? *Did you have a big loss at some point in your investing/trading history and then find that the loss still affects what you do in the market today?

When people are over stressed, their capability of doing things well shrinks dramatically. It's directly related to what happens to the brain.

*During stress, the hormone adrenaline is released into the bloodstream. This has the effect of diverting blood from the brain to the major muscles of the body. It means that you can run faster, but it also means you are much less effective at processing information. In fact, the conscious mind, which normally has the capacity to process seven chunks of information, shrinks down to the point of being able to process only one or two chunks of information.

*Think what that means to most investors and traders. They get stressed-- either by the market or by something going on in their lives--and can no longer effectively function.

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